[Extracted from the book titled “BITCOIN DREAM: Hope, Hype and Chaos”]
As PNG moves towards a digital financial future, two key innovations are shaping discussions—Digital Kina (PNG’s CBDC) and Bitcoin. While Digital Kina is a government-backed digital currency designed for local transactions, Bitcoin operates independently, offering global financial freedom and long-term savings potential.
In this conversation, Kepa, who understands a bit about cryptocurrency, explains to Maya, a newcomer, how Digital Kina and Bitcoin differ, their benefits and how they can be used in PNG.
They explore how each currency serves a unique purpose, helping citizens to navigate the evolving digital economy.
Kepa and Maya sit at a corner table at Vision City coffee shop, Cuppa. Maya stirs his coffee, looking thoughtful.
“Kepa, I keep hearing about this Digital Kina the government is planning. People also talk a lot about Bitcoin. What’s the difference?” Maya asked, taking a sip of his coffee.
“That’s a great question, Maya! Digital Kina is a Central Bank Digital Currency (CBDC) that will be issued by the Bank of Papua New Guinea (BPNG). It’s basically our Kina but in digital form.
Bitcoin, on the other hand, is a decentralized digital currency that is not controlled by any government or bank. It’s used worldwide and anyone can send or receive Bitcoin without needing a middleman,” Kepa explained, looking at his phone screen.
“So, Digital Kina is like Kina on my phone and Bitcoin is… different money?” Maya quired.
“Exactly! Digital Kina is still controlled by BPNG, just like regular Kina, so the government can track transactions, manage supply and enforce rules. Bitcoin is independent—no government or bank can control it,” Kepa added.
“That sounds like a big deal. But why would people in PNG want to use Bitcoin instead of Digital Kina?” Maya asked, quite interested.
Kepa replied, in a low tune. “It depends on what you need. Imagine you have a brother working in Australia who wants to send money home. With Digital Kina, your brother must send money through a bank or Western Union. The bank charges high fees and the transfer takes 1-3 days. The money is sent in Australian Dollars, converted to Kina and deposited into your bank or Digital Kina wallet.
But with Bitcoin, your brother sends Bitcoin directly to your crypto wallet. The transaction is fast (within minutes) and fees are very low. You can convert Bitcoin to Kina through a crypto exchange or use it directly for payments.”
“Wait, so with Bitcoin, I get my money faster and cheaper?” Maya asked again.
“Yes! That’s why many people in PNG are interested in Bitcoin. With Digital Kina, banks and regulators control the flow of money and fees are still a problem. But with Bitcoin, you control your own money,” Kepa replied.
“Okay, but can I use Bitcoin to buy things in PNG?” Maya lamented.
“Right now, not many shops accept Bitcoin in PNG but you can convert it to Kina anytime. Some businesses in Port Moresby are starting to accept Bitcoin for payments.
With Digital Kina, on the other hand, the government will make sure it’s widely accepted, just like regular Kina. So, you’ll be able to pay for groceries, transport and bills using Digital Kina once it’s launched,” Kepa explained.
“That sounds like Digital Kina is more useful for everyday spending,” Maya wanted to know.
“That’s true! For local payments, Digital Kina will be easier to use. But Bitcoin is better for savings, remittances and protecting against inflation.
Let’s say you save K1,000 today in your bank or Digital Kina wallet. With Digital Kina, your money stays in Kina but if prices rise (inflation), the value of your money goes down. In 10 years, that K1,000 might not buy as much as it does today. But with Bitcoin, its supply is limited, so its value tends to increase over time. If demand for Bitcoin grows, your K1,000 worth of Bitcoin might be worth a lot more in the future,” Kepa explained.
“So, Bitcoin is like digital gold and Digital Kina is like digital cash?” Maya said.
“That’s the perfect way to put it! Bitcoin is for saving and global payments, while Digital Kina is for everyday spending in PNG,” Kepa added.
“I get it now! So, if I just want to pay for things easily, I’ll use Digital Kina. But if I want to save money long-term or receive international payments, I should consider Bitcoin,” Maya lamented.
“Exactly! They both have different uses and it’s good to understand how to use both wisely,” Kepa replied, taking the last sip from the cup.
“Thanks. Now I know what people are talking about when they compare Bitcoin and Digital Kina. Maybe I should get a crypto wallet and start learning how to use Bitcoin,” Maya added.
“That’s the spirit! I can help you set one up. It’s always good to be ahead of the curve when it comes to money and technology,” Kepa said.
Maya smiles, realizing he just unlocked a new world of financial knowledge.
Digital Kina and Bitcoin serve different purposes in PNG’s financial system. Digital Kina will make daily transactions easier, while Bitcoin offers better opportunities for savings, remittances and financial freedom. Understanding both gives citizens more control over their money in a digital future. Both can coexist in PNG’s financial ecosystem, giving people more financial choices.
- Peter S. Kinjap is the author of the book titled “BITCOIN DREAM: Hope, Hype and Chaos” for students and policymakers in PNG. Next week, we will have a look at Digicel’s CellMoni – a mobile money in PNG Vs Bitcoin. For comments, email: howarigtraders@gmail.com